The Cost of Obamacare Has Gone Down, Not Up

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Republicans rushed to the microphones today to announce that new projections show that Obamacare will break the bank. In fact, says Fox News, a CBO reports says that it will cost “twice as much as the original $900 billion price tag.”

You will be unsurprised to learn that this is not true. As Jon Cohn patiently explains here, the previous CBO report estimated the costs of expanded insurance coverage between 2012-21. The new report covers 2012-22. In other words, the new report includes an extra year compared to the previous one. That’s the main reason that costs are higher.

In fact, CBO is quite clear on what an apples-to-apples comparison shows:

The current estimate of the gross costs of the coverage provisions ($1,496 billion through 2021) is about $50 billion higher than last year’s projection; however, the other budgetary effects of those provisions, which partially offset those gross costs, also have increased in CBO and JCT’s estimates (to $413 billion), leading to the small decrease in the net 10-year tally.

As Table 1 shows, if you compare the original 2012-21 time period, CBO’s new estimate of the cost of Obamacare is $48 billion less than it was last year. (The report estimates only the cost of expanded insurance coverage under Obamacare, not the entire set of costs and revenues. So the total impact on the deficit hasn’t yet been updated.)

Moral of this story: Never believe anything that Republicans say about Obamacare until you check out the source yourself. But you already knew that.

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate